Arbitration hearing - Western Force v ARU - 31.07.2017

[Leo86]

In all honesty im hoping this means 5 aussie teams next year. Hopefully part of the contract wasnt ridiculous pay outs fron the ARU. Its now in Vics hands to make themselves sustainable

[Darren]

I have downloaded the docs ($19 each). I can confirm that 11,625,000 shares passed from Imperium to VRU for $1. New directors are North, Stone, Cattermole and Dalziel. Registered address AAMI Park.

What does this mean for us??

I'm wondering if this makes it easier for the ARU to screw the rebels?

ARU dumps Rebels.
Rebels/VRU sue ARU.
ARU lawyers say but you've only owned them for a week, and they only cost you a dollar - here, let us reimburse you your losses (writes cheque for $2)..

?

[chibi]

In all honesty im hoping this means 5 aussie teams next year. Hopefully part of the contract wasnt ridiculous pay outs fron the ARU. Its now in Vics hands to make themselves sustainable

Yeah same here, even if we have to accommodate the SunWolves in a 6-team group, surely the intra-conference and inter-conference games games be rescheduled so that it results in the same amount of fixtures.

[shasta]

Maybe it depends on what was actually transferred. The holding company? Plus the licence? Plus the long term participation guarantee? If not all three, could they be axed immediately should Rugby WA win at arbitration. What a mess.

[Alison]

According to the ASIC docs, only the shares were transferred and the directors & company secretary swapped. But that's probably all they're required to declare to ASIC. Presumably though, the legal entity that owns the SuperRugby licence is the MRRU Ltd company, so if the legal entity has changed ownership then so has the licence, no?

I've been looking out for the MRRU Ltd accounts on the ASIC website for ages but none have been filed. Presumably that's because they have been included in Cox's group company filings. Dunno. Would love to find out what they show though!

[sittingbison]

Of further interest is the timing.,..

[John Edwards]

According to the ASIC docs, only the shares were transferred and the directors & company secretary swapped. But that's probably all they're required to declare to ASIC. Presumably though, the legal entity that owns the SuperRugby licence is the MRRU Ltd company, so if the legal entity has changed ownership then so has the licence, no?

I've been looking out for the MRRU Ltd accounts on the ASIC website for ages but none have been filed. Presumably that's because they have been included in Cox's group company filings. Dunno. Would love to find out what they show though!

All,
This will certainly get some airplay tomorrow. If The Rebels have a Participation Agreement similar to the one we were contracted to before the Alliance Agreement was in place (which we think they do) then the transfer of the License requires ARU Board approval. We know for sure that this has not happened. The VRU now own the Company that owns the Rebels and as such they own the license and they own all the Liability that goes with the share transfer . Technically the ARU should be in a position to Terminate the Participation Agreement for breach of contract. So if you extrapolate that and the ARU are genuine about cutting a team (and not just us) then their path may be very clear. If they want to object to the transfer then they have to open up another legal front and after all this was the demise of a certain Austrian Dictator.
Cox is now scot free and he has also delivered on his promise that he would not sell out if it meant the Rebels would fold. Nice hospital pass for the VRU now to contend with.
Of course we must ask the question that if the Rebels were in the end only worth $1 what was all the fuss about .

[valzc]

So.... just so I can understand it, because the VRU have gone ahead and taken over the Rebels without ARU signing off on the license then that's where there's a breach of contract? If that's so, why the hell would the VRU do that?

[shasta]

Of course we must ask the question that if the Rebels were in the end only worth $1 what was all the fuss about .

Which is what has had me stumped ever since this farce started. How could damages possibly be awarded with the financial train wreck that the Rebels have been since day 1?

[John Edwards]

So.... just so I can understand it, because the VRU have gone ahead and taken over the Rebels without ARU signing off on the license then that's where there's a breach of contract? If that's so, why the hell would the VRU do that?

Correct. We can only surmise that they had legal council advice and that they are prepared to defend this action. They would certainly have a fighting fund. The next move is the ARU's to make. Do they take on the VRU legally in parallel with us. Would the public stand for this? They must be wondering how this has all unraveled so badly for them.

[Wickerman]

Beth Newman Profile by Beth Newman
Yet another twist has appeared in the dragging Super Rugby saga, with the Victorian Rugby Union (VRU) set to take control of the Melbourne Rebels franchise.

Documents lodged with ASIC by ISM on Friday reveal that Andrew Cox has relinquished control of the Melbourne Rebels, a development that blindsided the ARU.

The documents show ISM has transferred its shares for $1 to the Victorian Rugby Union, effectively giving the union a controlling stake in the franchise.

While it is believed the ARU would have had to approve a sale, Cox, Imperium Sports Management and the VRU appear to have found a loophole in that.

The move means that the VRU would need to agree to any sale of the licence to the ARU, something that seems unlikely given it would result in the franchise being wound up.

The ARU issued a statement on Friday night, confirming it had no knowledge of the documents or the decision until after the fact.

"The Australian Rugby Union (ARU) has tonight received confirmation from a third party that ownership of the Melbourne Rebels had transferred from Imperium Group to the Victorian Rugby Union (VRU)," it read.

"The Melbourne Rebels have an obligation under their Participation Deed to inform ARU of any change of ownership. To date, ARU has received no such communication from the Melbourne Rebels despite recent attempts to confirm their position.

"ARU is urgently seeking to confirm the terms on which this transfer occurred."



The decision in the ARU’s arbitration with RugbyWA are yet to be handed down, but this latest development means that if the ARU are on the wrong side of that decision, the situation could become dire for the national body, with its only obvious options likely being to strike a deal with the Rebels ownership for the licence or look into some kind of merger.

Cox has also signed away his own directorship, while business partner Peter Sidwell has also ceased to be a director of the club, along with Michele Williams.

VRU president Tim North, Owain Stone, Lyndsey Cattermole and Robert Dalziel have been appointed directors in their place.

It is believed a meeting was held on Friday to agree on the changes, before the papers being lodged on Friday afternoon.

The Rebels did not officially confirm the transfer of the licence when contacted on Friday night by RUGBY

[Sheikh]

So the Rebels obviously believe that the Force will win the arbitration!

[Sheikh]

And now no longer "privately owned" which was their catchcry to not able to be axed....

The VRU is a member union and must follow the process of the ARU , IMHO...

No, but if the Own The Force succeeds in buying the licence back, *we* will be privately owned, so can't be axed.

I think the VRU owning the club might mean that a merger of the Rebels and Brumbies is more likely, as it would be a merger of two rugby unions, not a rugby union and a privately owned club.

[Kalahard]

That should read Tim North QC. He wont go quietly. The VRU will be about to follow us and take the ARU on in the courts by the looks of all that. Mumma Mia! What a mess!

[Kalahard]

http://nedlandsrugby.com.au/2017/08/...a-smoking-gun/

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